1CHAPTER 1: SYNOPSIS

1.1EXECUTIVE SUMMARY
HDFC and ICICI are major financial and banking service organizations in India HDFC stands for
Housing Development Finance Corporation and ICICI is Industrial Credit and Investment
Corporation of India. It was in 1990s that the Government of India decided upon a policy of
liberalization under the leadership of Narsimha Rao. This policy allowed private banks to
become established in India although small in number. The first among these banks was Global
Trust Bank after which various others like Axis Bank, HDFC Bank, and ICICI Bank emerged. This
gave a boost to the banking sector in India.
HDFC was established in 1994 by India’s largest housing finance company housing development
finance corporation Ltd. In jan 1995, it started operating as scheduled commercial bank. HDFC
Bank merged with Times Bank Ltd in2000 and this was the first private bank merger in India.
HDFC also acquired centurion Bank Of Punjab in 2008.
ICICI Bank was basically setup with the objective of providing middle and long term financing to
business in India. Some Indian industries, government of India and World Bank took advantage
of this initiative.

1.2 OBJECTIVE OF STUDY

 To study the market shares in banking sector of ICICI & HDFC.

 To study the customer satisfaction with ICICI & HDFC.
 To analyze the decision making process of the customer.
 To study the customer perception about ICICI & HDFC

1.3 REVIEW

Moody's Analytics is a subsidiary of Moody's Corporation established in 2007to focus on non-

rating activities, separate from Moody's Investors Service. It performs economic research
related to credit analysis, performance management, financial modeling, structured analysis
and financial risk management. Moody's Analytics also offers software and consulting services
including proprietary economic models and software tools, as well as professional training for
the financial services sector, particularly risk management accreditation. The company also
provides quantitative analysis and credit risk management tools.
Moody's to review ICICI Bank, HDFC Bank for downgrade in line with sovereign rating

STUDYS OF ICICI AND HDFC BANKS Page 1

Global credit rating agency Moody's Investors Service Monday said that it has placed India's
three major private sector lenders ICICI Bank, HDFC Bank and Axis Bank under review for a
downgrade, making its intentions clear about rating lenders in line with the sovereign rating of
the nations in which they are based."Moody's expects to position the standalone credit
assessments of most banks globally at (or below) the rating of the sovereign where the bank is
domiciled "Moody's said in statement, adding that the review is expected to be concluded in
three months. The standalone credit assessment of ICICI Bank, HDFC Bank and Axis Bank is
currently positioned above the country's sovereign debt rating, Moody's said, just a couple of
days after these lenders were stripped of their 'stable' outlook by another ratings firm Standard
& Poor's (S&P).

1.4 HYPOTHESIS

 The HDFC plan is more preferable to old age group people.

 HDFC is unit link pension plan is able to give returns compared to that of companies
because of lower fund management charges
 HDFC and ICICI investment is very convenient to customer

1.5 METHODOLOGY

The study was conducted by the means of personal interview with respondents and the
information given by them were directly recorded on questionnaire. For the purpose of
analyzing the data it is necessary to collect the vital information. There are two types of data,
this are-

 Primary Data
 Secondary data

PRIMARY DATA:-
Primary data is fresh data. This data is collected from books, internet and direct questionnaire.
The data is collected from questionnaire. The questionnaire is filled from customer through
direct interviewing them.
SECONDARY DATA:-
Secondary data is collected from magazines, newspaper, etc.
Eg; social networking sites, books, newspaper, etc

STUDYS OF ICICI AND HDFC BANKS Page 2

CHAPTER 2: INTRODUCTION & OBJECTIVES
2.1 INTRODUCTION ON ICICI & HDFC BANK
Banking is the backbone of a modern economy. Health of banking industry is one of the most
important pre-conditions for sustained economic progress of any country. The world of banking
has assumed a new dimension at the dawn of the 21st century with the advent of tech banking,
thereby lending the industry as tamp of universality. In general, banking may be classified as
retail and corporate banking. Retail banking, which is designed to meet the requirements of
individual customers and encourage their savings, includes payment of utility bills, consumer
loans, credit cards, checking account balances, ATMs ,transferring funds between accounts and
the like. Corporate banking, on the other hand, caters to the needs of corporate customers like
bills discounting, opening letters of credit and managing cash.
ICICI Bank Ltd. is an Indian diversified financial services company headquartered in Mumbai,
Maharashtra. It is the second largest bank in India by assets and third largest by market
capitalization. It offers a wide range of banking products and financial services to corporate and
retail customers through a variety of delivery channels and through its specialized subsidiaries
in the areas of investment banking, life and non-life insurance, venture capital and asset
management. HDFC Bank was incorporated in Aug. 1994 and promoted by Housing
Development Finance Corporation Limited (HDFC) India's premier housing finance company
which also enjoys an impeccable track record in India as well as in international markets.
ICICI
ICICI (INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OFINDIA) Bank Ltd. is an Indian
diversified financial services company headquartered in Mumbai, Maharashtra. It is the second
largest bank in India by assets and third largest by market capitalization. It offers a wide range
of banking products and financial services to corporate and retail customers through a variety
of delivery channels and through its specialized subsidiaries in the areas of investment banking,
life and non-life insurance, venture capital and asset management. The Bank has a network of
2,575 branches and 8,003 ATM's in India, and has a presence in 19 countries, including India.
ICICI Bank is one of the Big Four banks of India, along with State Bank of India, Punjab
National Bank and HDFC Bank—its main competitors.
ICICI Bank is India's second-largest bank with total assets of Rs.3,663.74billion (US$ 76 billion) at
September 30, 2009 and profit after tax Rs.19.18billion (US$ 398.8 million) for the half year
ended September 30, 2009.TheBank has a network of 1,568 branches and about 4,883 ATMs in
India and presence in 18 countries. ICICI Bank offers a wide range of banking products and
financial services to corporate and retail customers through a variety of delivery channels and
through its specialized subsidiaries and affiliates in the areas of investment banking, life and
non-life insurance, venture capital and asset management. ICICI Bank's equity shares are listed

STUDYS OF ICICI AND HDFC BANKS Page 3

in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its
American Depositary Receipts (ADRs) are listed on the New York Stock Exchange.
HDFC
HDFC Bank was incorporated in Aug. 1994 and promoted by Housing Development Finance
Corporation Limited (HDFC) India's premier housing finance company which also enjoys an
impeccable track record in India as well as in international markets. HDFC was amongst the first
to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of the RBI's liberalization of the Indian Banking Industry.
HDFC Bank concentrates in four areas -corporate banking, treasury management, custodial
services and retail banking. It has entered the banking consortia of over 50 corporates for
providing working capital finance, trade services, corporate finance and merchant banking. .
HDFC bank has become the first private sector bank to be authorized by the Central Board of
Direct Taxes (CBDT) as well as the RBI to accept direct taxes, commencing April012001. The
taxes will be accepted at specified branches of the bank. Also it has announced a strategic tie-
up with a Bangalore-based business solutions software developer Tally Solutions Pvt (TSPL) for
developing and offering products and services facilitating on-line accounting and banking
services to SMEs (Small and Medium Enterprises).In 2001-02 the bank was listed on the New
York Stock Exchange in the form of ADS. Each ADS. represents 3 equity shares. Consequent to
the issue, the paid up capital of the Bank has increasedbyRs.37.42 crores.
2.2 HISTORY
ICICI
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and
was its wholly-owned subsidiary. ICICI's share holding in ICICI Bank was reduced to 46% through
a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on
the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock
amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in
fiscal 2001 and fiscal 2002. ICICI was formed in1955at the initiative of the World Bank, the
Government of India and representatives of Indian industry. The principal objective was to
create a development financial institution for providing medium-term and long-term project
financing to Indian businesses. In the 1990s, ICICI transformed its business from a development
financial institution offering only project finance to a diversified financial services group offering
a wide variety of products and services, both directly and through a number of subsidiaries and
affiliates like ICICI Bank. In1999, ICICI become the first Indian company and the first bank or
financial institution from non-Japan Asia to be listed on the NYSE.

STUDYS OF ICICI AND HDFC BANKS Page 4

HDFC
HDFC Bank was incorporated in 1994 by Housing Development Finance Corporation Limited
(HDFC), India's largest housing finance company. It was among the first companies to receive an
'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector.
The Bank started operations as a scheduled commercial bank in January 1995 under the RBI's
liberalization policies. Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group)
was merged with HDFC Bank Ltd., in 2000. This was the first merger of two private banks in
India. Shareholders of Times Bank received 1share of HDFC Bank for every 5.75 shares of Times
Bank. In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more
than 1,000. The amalgamated bank emerged with a base of about Rs. 1,22,000 crore and net
advances of about Rs.89,000 crore. The balance sheet size of the combined entity is more than
Rs. 1,63,000 crore.

2.3 OJECTIVES, FEATURES, FUNCTIONS AND GOAL

ICICI-
Broad objectives of the ICICI are:

 to assist in the creation, expansion and modernization of private concerns

 to encourage the participation of internal and external capital in the private concerns
 to encourage private ownership of industrial investment.

The functions of the ICICI-

 It provides long-term and medium-term loans in rupees and foreign currencies.

 It participates in the equity capital of the industrial concerns.
 It underwrites new issues of shares and debentures.
 It guarantees loans raised by private concerns from other sources.
 It provides technical, managerial and administrative assistance to industrial concerns.

STUDYS OF ICICI AND HDFC BANKS Page 5

The features of ICICI-
The important features of the functioning of the ICICI arc as given below:

 The financial assistance as provided by the ICICI includes rupee loans, foreign currency
loans, guarantees, underwriting of shares and debentures, and direct subscription to
shares and debentures.
 Originally, the ICICI was established to provide financial assistance to industrial concerns
in the private sector. But, recently, its scope has been widened by including industrial
concerns in the public, joint and cooperative sectors.
 ICICI has been providing special attention to financing riskier and non-traditional
industries, such as chemicals, petrochemicals, heavy engineering and metal products.
These four categories of industries have accounted for more than half of the total
assistance.
 Of late, the ICICI has also been providing assistance to the small scale industries and the
projects in backward areas.
 Along with other financial institutions, the ICICI has actively participated in conducting
surveys to examine industrial potential in various states.

HDFC-
The ideal way to connect with the core of any company is to understand its background and
objectives. We at HDFC aspire to provide our customers with unique home loan solutions and
make home ownership as easy and simple as unlocking a door with a key. The strategies are to
Increase the return on equity each year by 1 percentage point in order to maximize shareholder
value, Maintain gross Non-Performing Assets (NPAs) below 1% Consistently grow the loan book;
improve operational efficiency by consistently bringing down the cost to income ratio.
Business Objective
Primary objective is to enhance residential housing stock in the country through the provision
of housing finance in a systematic and professional manner, and top remote home ownership.
They aim to increase the flow of resources to the housing sector by integrating the housing
finance sector with the overall domestic financial markets.

GOALS

 Develop close relationships with individual households.

 Maintain our position as the premier housing finance institution in the country.
 Transform ideas into viable and creative solutions.

STUDYS OF ICICI AND HDFC BANKS Page 6

  To grow through diversification by gaining leverage from our existing client base.
 To nurture the values and ethos of Brand HDFC through all its Subsidiaries and Associate
Companies.

2.4 ORGANISATIONAL STRUCTURE

ICICI BANK
ICICI Banks organization structure is designed to be flexible and customer-focused, while
seeking to ensure effective control and supervision and consistency in standards across the
organization and align all are as of operations to overall organizational objectives. The
organization structure is divided into six principal groups ………………..
1. Retail Banking-
The Retail Banking Group is responsible for products and services for retail customers and small
enterprises including various credit products, liability products, distribution of third party
investment and insurance products and transaction banking services.
2. Wholesale Banking-
The Wholesale Banking Group is responsible for products and services for large and medium-
sized corporate clients, including credit and treasury products, investment banking, project
finance, structured finance and transaction banking services.
3. International Banking-
The International Banking Group is responsible for its international operations, including
operations in various overseas markets as well as its products and services for non-resident
Indians and its international trade finance and correspondent banking relationships.
4. Rural and Agricultural Banking-
The Rural, Micro-Banking & Agri-Business Group is responsible for envisioning and
implementing rural banking strategy, including agricultural banking and micro-finance.
5. Government Banking
The Government Banking Group is responsible for government banking initiatives.
6. Corporate Center
The Corporate Center comprises the internal control environment functions (including
operations, risk management, compliance audit and legal); finance ;human resitsces
management; and facilities management& administration.

STUDYS OF ICICI AND HDFC BANKS Page 7

HDFC BANK
The Composition of the Board of Directors of the Bank is governed by the Companies Act, 1956,
the Banking Regulation Act, 1949 and the listing requirements of the Indian Stock Exchanges
where securities issued by the Bank are listed. The Board has strength of 12 Directors as on
March 31, 2008.All Directors other than Mr. Aditya Puri, Mr. Harish Engineer and Mr. Paresh
Sukthankar are non-executive directors. The Bank has five independent directors and seven
non-independent directors. The Board consists of eminent persons with considerable
professional expertise and experience in banking, finance, agriculture, small scale industries
and other related fields. None of the Directors on the Board is a member of more than 10
Committees and Chairman of more than 5 Committees across all the companies in which
he/she is a Director. All the Directors have made necessary disclosures regarding Committee
positions occupied by them in other companies. Mr. Jagdish Capoor, Mr. Keki Mistry, Mrs.
RenuKarnad, Mr. Vineet Jain, Mr. Aditya Puri, Mr. Harish Engineer and Mr. Paresh Sukthankar
are non-independent Directors on the Board. Mr. Arvind Pande, Mr. Ashim Samanta, Mr.
Gautam Divan, Mr. C.M. Vasudev and Dr. Pandit Palande are independent directors on the
Board. Mr. Keki Mistry and Mrs. Renu Karnad represent HDFC Limited on the Board of the Bank.
Mr. Vineet Jain represents Bennett, Coleman Group on the Board of the Bank. The Bank has not
entered into any materially significant transactions during the year, which could have a
potential conflict of interest between the Bank and its promoters, directors, management
and/or their relatives, etc. other than the transactions entered into in the normal course of
business. The Senior Management have made disclosures to the Board confirming that there
are no material, financial and/or commercial transactions between them and the Bank which
could have potential conflict of interest with the Bank at large.

2.5 SWOT ANALYSIS

ICICI BANK

STRENGTH:
1) ICICI Prudential is No. 1 private life player in India.
2) Innovative insurance policies with rider benefits.
3) Motivation factors provided by the company.
4) one of the largest financial Institution of India’s.
5) 5)Second largest bank with network of 469branchesand 1740 ATM· s across India.
6) A huge database of corporate clients, retail customer, and bank customers.
7) of ICICI & Assets base of ICICI is more than Rs 1,08,000Crores.

STUDYS OF ICICI AND HDFC BANKS Page 8

 8) Training provided to all people associating with ICICI prudential.
9) Highest paid up capital deposited in IRDA, in comparison to all players.

WEAKNESS:

1) Very huge premiums of policies, compared to other insurance sector.

2) Minimum premium is 19000.(Except tax saving policy only 10,000)
3) Target upper class people only.
4) Policy charges are very high.
5) Problematic to advisors also.
6) Poor distribution: since it is in English language only.

OPPORTUNITIES:

1) Tie up with more corporate agents all over India.

2) Tie up with broker also.
3) No. of adopting new technology.
4) Strong Brand of Company Helps to boost sales in market.
5) Attract more people of providing customer centric products.

THREATS:
1) Threat from existing life insurance players.
2) Threat from new entrance.
3) Threat to substitute products.
4) Change in the policy of IRDA.
5) Competition from more & more new players.
6) People don’t aware of different distribution channel.

STUDYS OF ICICI AND HDFC BANKS Page 9

HDFC BANK

STRENGTH
1) First private life insurance company who got license by IRDA
2) Domestic image of HDFC supported by Standard Life’s international image is strength of
the company.
3) Strong and well spread network of qualified intermediaries and sales person.
4) Strong capital and reserve base.
5) The company provides customer service of the highest order.
6) Huge basket of product range which are suitable to all age and income groups.
7) Large pool of technically skilled manpower with in depth knowledge and understanding
of the market.
8) The company also provides innovative products to cater to different needs of different
customers.

WEAKNESS:
1) less number of branches compare to nearest competitors2)
2) Heavy management expenses and administrative costs.
3) Low customer confidence on the private players.
4) Vertical hierarchical reporting structure with many designations and cadres leading to
power politics at all levels without any exception.
5) Poor retention percentage of tied up agents.
6) Every employee does not have enough knowledge about insurance products and
commission rates.

OPPORTUNITIES:
1) Insurable population: According to IRDA only10% of the population is insured which
represents around 30% of the insurable population. This suggests more than 300m
people, with the potential to buy insurance, remain uninsured.
2) There will be inflow of managerial and financial expertise from the world· leading
insurance markets. Further the burden of educating consumers will also be shared
among many players.
3) International companies will help in building world class expertise in local market by
introducing the best global practice.

STUDYS OF ICICI AND HDFC BANKS Page 10

THREATS:
1) Other private insurance companies also aiming for the same uninsured population.
2) Big public sector insurance companies like Life Insurance Corporation (LIC) of India ,
National Insurance Company Limited, Oriental Insurance Limited, New India Assurance
Company Limited and United India Insurance Company Limited. People have more trust
in these companies.
3) Poaching of customer base by other companies.
4) Most people don’t understand the need or are not willing to take insurance policies in
general.
5) People prefer short term investment rather than insurance

CHAPTER 3: SERVICES PROVIDED BY ICICI AND HDFCBANK

3.1 ACCOUNTS AND DEPOSITS-

(1) SAVING ACCOUNT

 ICICI BANK-
An ICICI Bank Savings Account offers a valuable banking experience.

 Debit-cum-ATM Card - With ICICI Bank Savings Account you will get a debit card that you
can use to withdraw cash from any ATM. One may also use your debit card to directly
make purchases through a Visa/MasterCard POS (Point of Sale) machine available at
most stores.
 Money Multiplier Facility - Allow us to take care of your idle money by moving it into
high interest savings account earning.
 Internet Banking - Banking could not have been more convenient. Just log in with your
user ID and password and make banking a hassle-free routine.
 Customer Care - 24-hour Customer Care is always available to answer any query or take
your instructions. For Customer Care numbers,
 Mobile Banking - Transferring funds or getting to know your balance is as easy as
sending an SMS. For details on Mobile Banking, Standing Instructions - ICICI Bank
accepts and supports Standing Instructions.
 Nomination Facility - You may nominate a person as beneficiary to your account
proceeds.
 DD Call and Collect - Don't waste even a minute in a queue to collect a Demand Draft or
Pay Order. On the way to the branch, just call Customer Care, provide details of the DD
to be prepared and collect it ready and signed at the branch

STUDYS OF ICICI AND HDFC BANKS Page 11

  HDFC BANK

 Wide network of branches and over 7300 ATMs to meet all your banking needs,no
matter where you are located.
 Bank conveniently with facilities like Net Banking and Mobile Banking-check your
account balance, pay utility bills or stop cheque payments all via SMS.
 Never overspend–shop using your International Debit Card that reflectsthe actual
balance in your savings account.
 Personalized chaques with your name printed on each cheque leaf for enhanced
security.
 Take advantage of Bill Pay–an instant solution so you can pay all your frequent utility bill
payments. Instruct for payments over the phone or through the Internet.
 Avail of facilities like Safe Deposit Lockers, Sweep-In and Super Saver facilities on your
account.
 Free cash withdrawals at any other Bank's ATMs
 Free Payable-at-Par cheque book, without any usage charges.
 Free Insta Alerts for all account holders for lifetime of the account.
 Free passbook facility available at home branch for account holders
 Free Email Statement facility.

(2) SALARY ACCOUNT

 ICICI BANK-
ICICI Bank Salary Account is a benefit-rich payroll account for Employers and Employees. As
an organization, you can opt for our Salary Accounts to enable easy disbursements of
salaries and enjoy numerous other benefits too.
With ICICI Bank Salary Accounts your employees will enjoy the convenience of :--

 Having the largest network of ATMs at their command.

 Free 24 hour Phone Banking.
 Free Internet Banking. All one would require to do is to send ICICI Bank an advice (in
form of a cheque/debit instruction, etc) for the total salary amount along with the salary
details of the designated employees in a soft and hard copy format and we will credit
the respective employees' accounts as per your statement of advice. Besides all of the
above, employees will automatically become ICICI Bank account holders with special
benefits and privileges of 8-8 banking, Investment advisory and much more. ICICI Bank

STUDYS OF ICICI AND HDFC BANKS Page 12

 also has a special offering: Defense Banking Services designed exclusively for the armed
forces.

 HDFC BANK-

 Zero Balance Savings Account

 Free payable at par cheque book @ 25 cheque leaves per quarter.
 Free transactions per month at Non- HDFC Bank ATMs in India.
 Free for life International Debit Card for the primary applicant with ATM cash
withdrawal limit of Rs 25,000 per day and POS usage limit of Rs.40,000 per day.
 Add-on International debit card for secondary holder (Free for the first year).
 Free Personal Accidental Death Cover of Rs. 1 lakhs
 Anywhere Banking across our extensive Branch and ATM network.
 Free Quarterly Account Statements.
 Free Monthly Account statements by e-mail (Optional).
 Free Passbook facility available at home branch for account holders.
 Free DDs /MCs up to Rs. 25,000 per instrument payable at HDFC Bank branch locations.
 Free mobile and e-mail alerts (Instant Alerts Facility).
 Free Utility payment facility (Bill Pay).
 Free Phone banking, Mobile Banking and Net Banking &Electronic Funds Transfer
options

(3) DREAM DEPOSITS

 ICICI BANK-

ICICI dream for individual, for families, friends and relatives and for society at large too. Some
of dreams are need based, while some inspirational. The dreams that are close to us; they
mean everything.. they all want to nurture them and if possible secure them so that we can
accomplish them under all odds. So be it
our child’s education, daughter’s marriage, owning a home, driving our car or
planning our retirement, it is imperative that we secure them at all costs. To secure them, you
need to plan your finances prudently, based on your needs and aspirations at different points in
time. A plan that gives you the flexibility in terms of choices that suit your needs and an
assurance of a return that is safe and secure.

STUDYS OF ICICI AND HDFC BANKS Page 13

  CURRENT ACCOUNT IN HDFC BANk

 Get convenient inter-city banking and free cheque payments anywhere.

 Free Collections of funds through RTGS and NEFT.
 Free Payments through NEFT. Nominal charges for RTGS payments.
 Transfer funds across cities between HDFC Bank accounts at a nominalcharge of Rs.15
per transactions.
 Issue free Demand Drafts (DD) / Pay Order for values above Rs.100,000.For Demand
Drafts up to Rs.50,000 a charge of Rs.40, Demand Draftsabove Rs.50,000 and below
Rs.100,000 a charge of Rs.25 will be levied.
 Get a payable-at-par cheque book at a nominal price.
 Register for Insta Alerts and receive updates on your account onprocessing of your
transaction.
 Enjoy Doorstep Banking for your convenience and security. Cash andcheque pick-ups
and cash deliveries can be arranged from your doorstep,through a reputed agency.
 Get 24-hour Phone Banking, Net Banking and Mobile Banking to check your account
balance and transaction details, find out the status of yourcheques or stop cheque
payments.

(4)FIXED DEPOSIT
 ICICI BANK-

 Flexibility of tenure - 7 days to 10 years

 Liquidity-
 Premature / Partial withdrawal permitted (subject to applicable charges)
 Loan / Overdraft upto 90% of FD amount
 Option of monthly / quarterly payout available
 Competitive interest rate - for various tenures
 Convenient ways to open a FD
 Internet Banking
 Phone banking
 ICICI Bank Bran

STUDYS OF ICICI AND HDFC BANKS Page 14

  HDFC BANK-

Regular Fixed Deposits offer:

 Easy investments with high returns

 Flexibility and security I offering
 Higher rate of interest on fixed Deposits for senior citizens

STUDYS OF ICICI AND HDFC BANKS Page 15